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Annual
Report |
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August
31, 2023 |
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Avantis®
All Equity Markets ETF (AVGE) |
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Avantis®
All Equity Markets Value ETF (AVGV) |
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Avantis®
All International Markets Equity ETF (AVNM) |
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Avantis®
All International Markets Value ETF (AVNV) |
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Avantis®
Moderate Allocation ETF (AVMA) |
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Chairman’s
Letter |
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Avantis
All Equity Markets ETF |
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Performance |
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Portfolio
Commentary |
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Fund
Characteristics |
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Avantis
All Equity Markets Value ETF |
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Performance |
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Portfolio
Commentary |
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Fund
Characteristics |
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Avantis
All International Markets Equity ETF |
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Performance |
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Portfolio
Commentary |
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Fund
Characteristics |
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Avantis
All International Markets Value ETF |
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Performance |
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Portfolio
Commentary |
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Fund
Characteristics |
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Avantis
Moderate Allocation ETF |
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Performance |
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Portfolio
Commentary |
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Fund
Characteristics |
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Shareholder
Fee Examples |
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Schedules
of Investments |
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Statements
of Assets and Liabilities |
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Statements
of Operations |
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Statements
of Changes in Net Assets |
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Notes
to Financial Statements |
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Financial
Highlights |
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Report
of Independent Registered Public Accounting Firm |
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Management |
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Approval
of Management Agreements |
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Liquidity
Risk Management Program |
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Additional
Information |
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Any
opinions expressed in this report reflect those of the author as of the date of
the report, and do not necessarily represent the opinions of American Century
Investments®
or any other person in the American Century Investments organization. Any such
opinions are subject to change at any time based upon market or other conditions
and American Century Investments disclaims any responsibility to update such
opinions. These opinions may not be relied upon as investment advice and,
because investment decisions made by American Century Investments funds are
based on numerous factors, may not be relied upon as an indication of trading
intent on behalf of any American Century Investments fund. Security examples are
used for representational purposes only and are not intended as recommendations
to purchase or sell securities. Performance information for comparative indices
and securities is provided to American Century Investments by third party
vendors. To the best of American Century Investments’ knowledge, such
information is accurate at the time of printing.
Jonathan
Thomas
Dear
Investor:
Thank
you for reviewing this annual report for the period ended August 31, 2023.
Annual reports help convey important information about fund returns, including
market factors that affected performance. For additional investment insights,
please visit avantisinvestors.com.
Stocks
Rebounded, Bonds Struggled
Asset
class returns, particularly for U.S. and global stocks, improved dramatically
compared with the previous fiscal year. The bounce back occurred despite ongoing
volatility, rising interest rates and Fitch Ratings’ first-ever downgrade of
U.S. debt.
Investor
expectations for the Federal Reserve (Fed) to conclude its rate-hike campaign
partly fueled the optimism. Inflation’s steady slowdown, mounting recession
worries and a series of U.S. regional bank failures prompted investors to
regularly recalibrate their monetary policy outlooks. However, with inflation
still higher than central bank targets, the Fed and its developed markets peers
continued to raise interest rates.
After
pausing in June, the Fed resumed its tightening campaign in July, raising rates
to a range of 5.25% to 5.5%, a 22-year high. Citing still-higher-than-target
inflation and still-strong economic data, policymakers left their future policy
options open. Inflation remained even higher in the eurozone and the U.K.,
prompting central bankers there to steadily raise interest rates. Government
bond yields soared, including the benchmark 10-year Treasury yield, which surged
to a 16-year high late in the period.
Despite
the inflation and rate backdrops, better-than-expected corporate earnings helped
the S&P 500 Index return 15.94% for the 12-month period. Non-U.S. developed
markets stocks delivered modestly higher returns, while emerging markets stocks
gained only 1.25%. Meanwhile, amid elevated inflation and sharply higher
Treasury yields, most U.S. bond and other rate-sensitive sectors declined,
though not as much as in the prior fiscal year. Exceptions included corporate
and municipal bonds, which delivered modest gains.
Remaining
Diligent in Uncertain Times
We
expect market volatility to linger as investors navigate a complex environment
of persistent inflation, tighter financial conditions, banking industry
turbulence and recession risk. In addition, increasingly tense geopolitical
considerations complicate the market backdrop.
We
appreciate your confidence in us during these extraordinary times. American
Century Investments has a long history of helping clients weather unpredictable
and volatile markets, and we’re confident we will continue to meet today’s
challenges.
Sincerely,
Jonathan
Thomas
Chairman
Avantis
Investors
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Avantis
All Equity Markets ETF (AVGE) |
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Total
Returns as of August 31, 2023 |
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Since
Inception |
Inception
Date |
Net
Asset Value |
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24.04% |
9/27/2022 |
Market
Price |
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|
24.02% |
9/27/2022 |
MSCI
ACWI IMI Index |
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|
24.29% |
— |
Market
price is determined using the bid/ask midpoint at 4:00 p.m. Eastern time, when
the net asset value (NAV) is typically calculated. Market performance does not
represent the returns you would receive if you traded shares at other times. NAV
prices are used to calculate market price performance prior to the date when the
fund first traded on the NYSE Arca, Inc. Fund returns would have been lower if a
portion of the fees had not been waived.
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Growth
of $10,000 Over Life of Fund |
$10,000
investment made September 27, 2022 |
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Value
on August 31, 2023 |
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Net
Asset Value — $12,404 |
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MSCI
ACWI IMI Index — $12,429 |
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Fund
returns would have been lower if a portion of the fees had not been
waived.
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Total
Annual Fund Operating Expenses |
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0.25% |
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The
total annual fund operating expenses shown is as stated in the fund’s prospectus
current as of the date of this report. The prospectus may vary from the expense
ratio shown elsewhere in this report because it is based on a different time
period, includes acquired fund fees and expenses, and, if applicable, does not
include fee waivers or expense reimbursements.
Data
presented reflect past performance. Past performance is no guarantee of future
results. Current performance may be higher or lower than the performance shown.
Total returns for periods less than one year are not annualized. Investment
return and principal value will fluctuate, and redemption value may be more or
less than original cost. Data assumes reinvestment of dividends and capital
gains, and none of the charts reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. To obtain
performance data current to the most recent month end, please call
1-833-928-2684 or visit avantisinvestors.com. For additional information about
the funds, please consult the prospectus.
Portfolio
Managers: Eduardo Repetto, Mitch Firestein, Daniel Ong, Ted Randall and Matthew
Dubin
Fund
Strategy
Avantis
All Equity Markets ETF is a fund of funds that seeks long-term capital
appreciation by investing in other Avantis ETFs. These underlying funds
represent a broadly diversified basket of equity securities and seek to
overweight securities expected to have higher returns or better risk
characteristics than a passive, market-capitalization weighted
index.
Collectively,
the underlying funds seek securities of companies that they expect to have
higher returns. They place an enhanced emphasis on securities of companies with
smaller market capitalizations and securities of companies with higher
profitability and value characteristics. Conversely, the underlying funds
collectively seek to underweight or exclude securities they expect to have lower
returns. This includes securities of large companies with lower levels of
profitability and higher prices relative to their book values or other financial
metrics.
The
fund is an actively managed exchange-traded fund (ETF) that does not seek to
replicate the performance of a specified index. Under normal market conditions,
the fund will invest at least 80% of its assets in equity ETFs. The managers
will strategically allocate to the underlying funds across geographies and
investment styles to achieve the desired allocation. The U.S. versus non-U.S.
allocations will be predicated on each region’s relative market capitalization
with a home bias toward the U.S. The portfolio managers regularly review the
fund’s allocations to determine whether rebalancing is appropriate. To better
balance risks in changing market environments and control costs and tax
realizations, the portfolio managers may modestly reallocate within asset class
target ranges. This may occur when prevailing market conditions and relative
performance of certain underlying strategies lead to deviations from the
targets.
Performance
Review
For
the period from the fund’s inception on September 27, 2022, through August 31,
2023, Avantis All Equity Markets ETF returned 24.02%* on a market price basis.
On a net asset value (NAV) basis, the fund returned 24.04%. NAV and market price
returns reflect fees and operating expenses, while index returns do
not.
The
fund underperformed the total world stock market, as measured by the MSCI ACWI
IMI Index, which returned 24.29% for the reporting period. The index is an
unmanaged index generally representative of the performance of large-, mid- and
small-cap stocks in developed and emerging markets.
The
fund’s underperformance versus the index was largely due to the fund’s
collective underweight versus the index in mega- and large-cap stocks, which
generally outperformed their smaller peers.
*Total
returns for periods less than one year are not annualized. Fund returns would
have been lower if a portion of the fees had not been waived.
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AUGUST
31, 2023 |
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Avantis
All Equity Markets ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
Domestic
Equity Funds |
71.2% |
International
Equity Funds |
28.7% |
Short-Term
Investments |
0.1% |
Other
Assets and Liabilities |
—(1) |
(1)
Category is less than 0.05% of total net assets. |
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Avantis
All Equity Markets Value ETF (AVGV) |
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Total
Returns as of August 31, 2023 |
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Since
Inception |
Inception
Date |
Net
Asset Value |
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|
|
3.89% |
6/27/2023 |
Market
Price |
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|
|
4.02% |
6/27/2023 |
MSCI
ACWI IMI Value Index |
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|
|
2.19% |
— |
Market
price is determined using the bid/ask midpoint at 4:00 p.m. Eastern time, when
the net asset value (NAV) is typically calculated. Market performance does not
represent the returns you would receive if you traded shares at other times. NAV
prices are used to calculate market price performance prior to the date when the
fund first traded on the NYSE Arca, Inc. Fund returns would have been lower if a
portion of the fees had not been waived.
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Total
Annual Fund Operating Expenses |
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0.28% |
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|
The
total annual fund operating expenses shown is as stated in the fund’s prospectus
current as of the date of this report. The prospectus may vary from the expense
ratio shown elsewhere in this report because it is based on a different time
period, includes acquired fund fees and expenses, and, if applicable, does not
include fee waivers or expense reimbursements.
Data
presented reflect past performance. Past performance is no guarantee of future
results. Current performance may be higher or lower than the performance shown.
Total returns for periods less than one year are not annualized. Investment
return and principal value will fluctuate, and redemption value may be more or
less than original cost. Data assumes reinvestment of dividends and capital
gains, and none of the charts reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. To obtain
performance data current to the most recent month end, please call
1-833-928-2684 or visit avantisinvestors.com. For additional information about
the funds, please consult the prospectus.
Portfolio
Managers: Eduardo Repetto, Mitch Firestein, Daniel Ong, Ted Randall and Matthew
Dubin
Fund
Strategy
Avantis
All Equity Markets Value ETF is a fund of funds that seeks long-term capital
appreciation by investing in other Avantis value ETFs. These underlying funds
represent a broadly diversified basket of equity securities and seek to select
or overweight securities expected to have higher returns or better risk
characteristics than a passive, market-capitalization weighted
index.
Collectively,
the underlying funds seek securities of companies that they expect to have
higher returns. They place an enhanced emphasis on securities of companies with
smaller market capitalizations and securities of companies with higher
profitability and value characteristics. Conversely, the underlying funds
collectively seek to underweight or exclude securities they expect to have lower
returns. This includes securities of large companies with lower levels of
profitability and higher prices relative to their book values or other financial
metrics.
The
fund is an actively managed exchange-traded fund (ETF) that does not seek to
replicate the performance of a specified index. Under normal market conditions,
the fund will invest at least 80% of its assets in equity ETFs. The portfolio
managers will strategically allocate to the underlying funds across geographies
and investment styles to achieve the desired allocation. The U.S. versus
non-U.S. allocations will be predicated on each region’s relative market
capitalization within the total global equity market. The portfolio managers
regularly review the fund’s allocations to determine whether rebalancing is
appropriate. To better balance risks in changing market environments and control
costs and tax realizations, the portfolio managers may modestly reallocate
within asset class target ranges. This may occur when prevailing market
conditions and relative performance of certain underlying strategies lead to
deviations from the targets.
Performance
Review
For
the period from the fund’s inception on June 27, 2023, through August 31, 2023,
Avantis All Equity Markets Value ETF returned 4.02%* on a market price basis. On
a net asset value (NAV) basis, the fund returned 3.89%. NAV and market price
returns reflect fees and operating expenses, while index returns do
not.
The
fund outperformed the total world value stock market, as measured by the MSCI
ACWI IMI Value Index, which returned 2.19% for the reporting period. The index
is an unmanaged index generally representative of the performance of large-,
mid- and small-cap value stocks in developed and emerging markets.
The
fund’s outperformance versus the index was largely due to the fund’s collective
overweight versus the index in companies with the highest profitability and
book-to-market characteristics, which outperformed. A corresponding underweight
in companies with the lowest profitability and book-to-market characteristics,
which underperformed, also aided relative results.
*Total
returns for periods less than one year are not annualized. Fund returns would
have been lower if a portion of the fees had not been waived.
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AUGUST
31, 2023 |
|
|
|
Avantis
All Equity Markets Value ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
Domestic
Equity Funds |
60.6% |
International
Equity Funds |
39.3% |
Short-Term
Investments |
0.1% |
Other
Assets and Liabilities |
—(1) |
(1)
Category is less than 0.05% of total net assets. |
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Avantis
All International Markets Equity ETF (AVNM) |
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Total
Returns as of August 31, 2023 |
|
|
|
|
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|
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|
|
Since
Inception |
Inception
Date |
Net
Asset Value |
|
|
|
1.50% |
6/27/2023 |
Market
Price |
|
|
|
1.62% |
6/27/2023 |
MSCI
ACWI ex USA IMI Index |
|
|
|
0.69% |
— |
Market
price is determined using the bid/ask midpoint at 4:00 p.m. Eastern time, when
the net asset value (NAV) is typically calculated. Market performance does not
represent the returns you would receive if you traded shares at other times. NAV
prices are used to calculate market price performance prior to the date when the
fund first traded on the NYSE Arca, Inc. Fund returns would have been lower if a
portion of the fees had not been waived.
|
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|
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|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
0.33% |
|
|
|
The
total annual fund operating expenses shown is as stated in the fund’s prospectus
current as of the date of this report. The prospectus may vary from the expense
ratio shown elsewhere in this report because it is based on a different time
period, includes acquired fund fees and expenses, and, if applicable, does not
include fee waivers or expense reimbursements.
Data
presented reflect past performance. Past performance is no guarantee of future
results. Current performance may be higher or lower than the performance shown.
Total returns for periods less than one year are not annualized. Investment
return and principal value will fluctuate, and redemption value may be more or
less than original cost. Data assumes reinvestment of dividends and capital
gains, and none of the charts reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. To obtain
performance data current to the most recent month end, please call
1-833-928-2684 or visit avantisinvestors.com. For additional information about
the funds, please consult the prospectus.
Portfolio
Managers: Eduardo Repetto, Mitch Firestein, Daniel Ong, Ted Randall and Matthew
Dubin
Fund
Strategy
Avantis
All International Markets Equity ETF is a fund of funds that seeks long-term
capital appreciation by investing in other Avantis non-U.S. ETFs. These
underlying funds represent a broadly diversified basket of equity securities and
seek to overweight securities expected to have higher returns or better risk
characteristics than a passive, market-capitalization weighted
index.
Collectively,
the underlying funds seek securities of companies that they expect to have
higher returns. They place an enhanced emphasis on securities of companies with
smaller market capitalizations and securities of companies with higher
profitability and value characteristics. Conversely, the underlying funds
collectively seek to underweight or exclude securities they expect to have lower
returns. This includes securities of large companies with lower levels of
profitability and higher prices relative to their book values or other financial
metrics.
The
fund is an actively managed exchange-traded fund (ETF) that does not seek to
replicate the performance of a specified index. Under normal market conditions,
the fund will invest at least 80% of its assets in equity ETFs. The portfolio
managers will strategically allocate to the underlying funds across geographies
and investment styles to achieve the desired allocation. The portfolio managers
regularly review the fund’s allocations to determine whether rebalancing is
appropriate. To better balance risks in changing market environments and control
costs and tax realizations, the portfolio managers may modestly reallocate
within asset class target ranges. This may occur when prevailing market
conditions and relative performance of certain underlying strategies lead to
deviations from the targets.
Performance
Review
For
the period from the fund’s inception on June 27, 2023, through August 31, 2023,
Avantis All International Markets Equity ETF returned 1.62%* on a market price
basis. On a net asset value (NAV) basis, the fund returned 1.50%. NAV and market
price returns reflect fees and operating expenses, while index returns do
not.
The
fund outperformed the total international stock market, as measured by the MSCI
ACWI ex USA IMI Index, which returned 0.69% for the reporting period. The index
is an unmanaged index generally representative of the performance of large-,
mid- and small-cap value stocks in non-U.S. developed and emerging markets.
The
fund’s outperformance versus the index was largely due to the fund’s collective
overweight versus the index in companies with the highest profitability and
book-to-market characteristics, which outperformed. A corresponding underweight
in companies with the lowest profitability and book-to-market characteristics,
which underperformed, also aided relative results.
*Total
returns for periods less than one year are not annualized. Fund returns would
have been lower if a portion of the fees had not been waived.
|
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|
AUGUST
31, 2023 |
|
|
|
Avantis
All International Markets Equity ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
International
Equity Funds |
99.9% |
Short-Term
Investments |
0.1% |
Other
Assets and Liabilities |
—(1) |
(1)
Category is less than 0.05% of total net assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Avantis
All International Markets Value ETF (AVNV) |
|
|
|
|
|
Total
Returns as of August 31, 2023 |
|
|
|
|
|
|
|
|
|
Since
Inception |
Inception
Date |
Net
Asset Value |
|
|
|
2.26% |
6/27/2023 |
Market
Price |
|
|
|
2.25% |
6/27/2023 |
MSCI
ACWI ex USA IMI Value Index |
|
|
|
2.00% |
— |
Market
price is determined using the bid/ask midpoint at 4:00 p.m. Eastern time, when
the net asset value (NAV) is typically calculated. Market performance does not
represent the returns you would receive if you traded shares at other times. NAV
prices are used to calculate market price performance prior to the date when the
fund first traded on the NYSE Arca, Inc. Fund returns would have been lower if a
portion of the fees had not been waived.
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
0.36% |
|
|
|
The
total annual fund operating expenses shown is as stated in the fund’s prospectus
current as of the date of this report. The prospectus may vary from the expense
ratio shown elsewhere in this report because it is based on a different time
period, includes acquired fund fees and expenses, and, if applicable, does not
include fee waivers or expense reimbursements.
Data
presented reflect past performance. Past performance is no guarantee of future
results. Current performance may be higher or lower than the performance shown.
Total returns for periods less than one year are not annualized. Investment
return and principal value will fluctuate, and redemption value may be more or
less than original cost. Data assumes reinvestment of dividends and capital
gains, and none of the charts reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. To obtain
performance data current to the most recent month end, please call
1-833-928-2684 or visit avantisinvestors.com. For additional information about
the funds, please consult the prospectus.
Portfolio
Managers: Eduardo Repetto, Mitch Firestein, Daniel Ong, Ted Randall and Matthew
Dubin
Fund
Strategy
Avantis
All International Markets Value ETF is a fund of funds that seeks long-term
capital appreciation by investing in other Avantis non-U.S. value ETFs. These
underlying funds represent a broadly diversified basket of equity securities and
seek to select or overweight securities expected to have higher returns or
better risk characteristics than a passive, market-capitalization weighted
index.
Collectively,
the underlying funds seek securities of companies that they expect to have
higher returns. They place an enhanced emphasis on securities of companies with
smaller market capitalizations and securities of companies with higher
profitability and value characteristics. Conversely, the underlying funds
collectively seek to underweight or exclude securities they expect to have lower
returns. This includes securities of large companies with lower levels of
profitability and higher prices relative to their book values or other financial
metrics.
The
fund is an actively managed exchange-traded fund (ETF) that does not seek to
replicate the performance of a specified index. Under normal market conditions,
the fund will invest at least 80% of its assets in equity ETFs. The portfolio
managers will strategically allocate to the underlying funds across geographies
and investment styles to achieve the desired allocation. The portfolio managers
regularly review the fund’s allocations to determine whether rebalancing is
appropriate. To better balance risks in changing market environments and control
costs and tax realizations, the portfolio managers may modestly reallocate
within asset class target ranges. This may occur when prevailing market
conditions and relative performance of certain underlying strategies lead to
deviations from the targets.
Performance
Review
For
the period from the fund’s inception on June 27, 2023, through August 31, 2023,
Avantis All International Markets Value ETF returned 2.25%* on a market price
basis. On a net asset value (NAV) basis, the fund returned 2.26%. NAV and market
price returns reflect fees and operating expenses, while index returns do
not.
The
fund outperformed the total international stock market, as measured by the MSCI
ACWI ex USA IMI Value Index, which returned 2.00% for the reporting period. The
index is an unmanaged index generally representative of the performance of
large-, mid- and small-cap value stocks in non-U.S. developed and emerging
markets.
The
fund’s outperformance versus the index was largely due to the fund’s collective
overweight versus the index in companies with the highest profitability and
book-to-market characteristics, which outperformed. A corresponding underweight
in companies with the lowest profitability and book-to-market characteristics,
which underperformed, also aided relative results.
*Total
returns for periods less than one year are not annualized. Fund returns would
have been lower if a portion of the fees had not been waived.
|
|
|
|
|
|
AUGUST
31, 2023 |
|
|
|
Avantis
All International Markets Value ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
International
Equity Funds |
99.9% |
Short-Term
Investments |
0.1% |
Other
Assets and Liabilities |
—(1) |
(1)
Category is less than 0.05% of total net assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Avantis
Moderate Allocation ETF (AVMA) |
|
|
|
|
|
Total
Returns as of August 31, 2023 |
|
|
|
|
|
|
|
|
|
Since
Inception |
Inception
Date |
Net
Asset Value |
|
|
|
2.09% |
6/27/2023 |
Market
Price |
|
|
|
2.13% |
6/27/2023 |
65%
MSCI ACWI IMI Index/35% Bloomberg US Aggregate Gov/Credit 1-5 Year
Index |
|
|
|
1.67% |
— |
MSCI
ACWI IMI Index |
|
|
|
2.26% |
— |
Bloomberg
US Aggregate Gov/Credit 1-5 Year Index |
|
|
|
0.46% |
— |
Market
price is determined using the bid/ask midpoint at 4:00 p.m. Eastern time, when
the net asset value (NAV) is typically calculated. Market performance does not
represent the returns you would receive if you traded shares at other times. NAV
prices are used to calculate market price performance prior to the date when the
fund first traded on the NYSE Arca, Inc. Fund returns would have been lower if a
portion of the fees had not been waived.
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
0.23% |
|
|
|
The
total annual fund operating expenses shown is as stated in the fund’s prospectus
current as of the date of this report. The prospectus may vary from the expense
ratio shown elsewhere in this report because it is based on a different time
period, includes acquired fund fees and expenses, and, if applicable, does not
include fee waivers or expense reimbursements.
Data
presented reflect past performance. Past performance is no guarantee of future
results. Current performance may be higher or lower than the performance shown.
Total returns for periods less than one year are not annualized. Investment
return and principal value will fluctuate, and redemption value may be more or
less than original cost. Data assumes reinvestment of dividends and capital
gains, and none of the charts reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. To obtain
performance data current to the most recent month end, please call
1-833-928-2684 or visit avantisinvestors.com. For additional information about
the funds, please consult the prospectus.
Portfolio
Managers: Eduardo Repetto, Mitch Firestein, Daniel Ong, Ted Randall and Matthew
Dubin
Fund
Strategy
Avantis
Moderate Allocation ETF is a fund of funds that seeks long-term capital
appreciation by investing in other Avantis equity and fixed income ETFs. These
underlying funds represent a broadly diversified basket of stocks and bonds and
seek to overweight securities expected to have higher returns or better risk
characteristics than a passive, market-capitalization weighted index.
To
identify securities with higher expected returns, the underlying equity funds
collectively emphasize securities of companies with smaller market
capitalizations and securities of companies it defines as high profitability or
value companies. Conversely, the underlying equity funds collectively seek to
underweight or exclude securities they expect to have lower returns. This
includes securities of large companies with lower levels of profitability and
higher prices relative to their book values or other financial metrics. The
portfolio managers of the underlying fixed-income funds use factors such as
industry sector, credit rating, duration, country and currency to categorize
fixed-income securities into component groups. They calculate the expected
return of securities in each component group by using information embedded in
current yields and other valuation metrics.
The
fund is an actively managed exchange-traded fund (ETF) that does not seek to
replicate the performance of a specified index. The portfolio managers will
allocate to the underlying funds across geographies and investment styles to
achieve the desired allocation. Among equities, the U.S. versus non-U.S.
allocations across geographies depend on each region’s relative market
capitalization with a home bias toward the U.S. The portfolio managers regularly
review the fund’s allocations to determine whether rebalancing is appropriate.
To better balance risks in changing market environments and control costs and
tax realizations, the portfolio managers may modestly reallocate within target
asset class ranges. This may occur when prevailing market conditions and
relative performance of certain underlying strategies lead to deviations from
the targets.
Performance
Review
For
the period from the fund’s inception on June 27, 2023, through August 31, 2023,
Avantis Moderate Allocation ETF returned 2.13%* on a market price basis. On a
net asset value (NAV) basis, the fund returned 2.09%. NAV and market price
returns reflect fees and operating expenses, while index returns do
not.
The
fund outperformed the broad world stock and U.S. bond markets, as measured by
the 65% MSCI ACWI Investable Market Index (IMI)/35% Bloomberg U.S. Aggregate
Government/Credit 1-5 Year Index, which returned 1.67% during the period. The
index is an unmanaged index generally representative of the broad performance of
developed and emerging markets stocks, including all capitalization categories,
and U.S. investment-grade bonds with maturities of one to five years.
The
fund’s relative outperformance was largely due to the fund’s collective
overweight versus the index in equity securities from companies with the highest
profitability and book-to-market characteristics, which outperformed. A
corresponding underweight in companies with the lowest profitability and
book-to-market characteristics, which underperformed, also aided relative
results.
*Total
returns for periods less than one year are not annualized. Fund returns would
have been lower if a portion of the fees had not been waived.
|
|
|
|
|
|
AUGUST
31, 2023 |
|
|
|
Avantis
Moderate Allocation ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
Domestic
Equity Funds |
47.6% |
Domestic
Fixed Income Funds |
33.0% |
International
Equity Funds |
19.3% |
Short-Term
Investments |
0.4% |
Other
Assets and Liabilities |
(0.3)% |
Fund
shareholders may incur two types of costs: (1) transaction costs, including
brokerage commissions paid on purchases and sales of fund shares; and (2)
ongoing costs, including management fees and other fund expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in your fund and to compare these costs with the ongoing cost of investing in
other funds.
The
example is based on an investment of $1,000 made at the beginning of the period
and held for the entire period from March 1, 2023 to August 31, 2023 (except as
noted).
Actual
Expenses
The
table provides information about actual account values and actual expenses for
each fund. You may use the information, together with the amount you invested,
to estimate the expenses that you paid over the period. First, identify the fund
you own. Then simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
under the heading “Expenses Paid During Period” to estimate the expenses you
paid on your account during this period.
Hypothetical
Example for Comparison Purposes
The
table also provides information about hypothetical account values and
hypothetical expenses based on the actual expense ratio of your fund and an
assumed rate of return of 5% per year before expenses, which is not the actual
return of a fund. The hypothetical account values and expenses may not be used
to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in your fund and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of the
other funds.
Please
note that the expenses shown in the table are meant to highlight your ongoing
costs only and do not reflect any transactional costs, such as brokerage
commissions paid on purchases and sales of fund shares. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been
higher.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Account
Value 3/1/23 |
Ending Account
Value 8/31/23 |
Expenses
Paid
During
Period(1)
3/1/23
- 8/31/23 |
Annualized
Expense
Ratio(1) |
Avantis
All Equity Markets ETF |
|
|
|
Actual |
$1,000 |
$1,061.00 |
$0.16 |
0.03% |
Hypothetical |
$1,000 |
$1,025.05 |
$0.15 |
0.03% |
Avantis
All Equity Markets Value ETF |
|
|
|
Actual |
$1,000 |
$1,038.90 |
$0.06(2) |
0.03% |
Hypothetical |
$1,000 |
$1,025.05 |
$0.15 |
0.03% |
Avantis
All International Markets Equity ETF |
|
|
|
Actual |
$1,000 |
$1,015.00 |
$0.05(2) |
0.03% |
Hypothetical |
$1,000 |
$1,025.05 |
$0.15 |
0.03% |
Avantis
All International Markets Value ETF |
|
|
|
Actual |
$1,000 |
$1,022.60 |
$0.05(2) |
0.03% |
Hypothetical |
$1,000 |
$1,025.05 |
$0.15 |
0.03% |
Avantis
Moderate Allocation ETF |
|
|
|
Actual |
$1,000 |
$1,020.90 |
$0.05(2) |
0.03% |
Hypothetical |
$1,000 |
$1,025.05 |
$0.15 |
0.03% |
(1)Expenses
are equal to the fund's annualized expense ratio listed in the table above,
multiplied by the average account value over the period, multiplied by 184, the
number of days in the most recent fiscal half-year, divided by 365, to reflect
the one-half year period. Annualized expense ratio reflects actual expenses,
including any applicable fee waivers or expense reimbursements and excluding any
acquired fund fees and expenses.
(2)Expenses
are equal to the fund's annualized expense ratio listed in the table above,
multiplied by the average account value over the period, multiplied by 66, the
number of days in the period from June 27, 2023 (fund inception) through August
31, 2023, divided by 365, to reflect the period. Had the fund been available for
the full period, the expenses paid during the period would have been
higher.
AUGUST 31,
2023
|
|
|
|
|
|
|
|
|
Avantis
All Equity Markets ETF |
|
|
|
Shares |
Value |
UNDERLYING
FUNDS(1)
— 99.9% |
|
|
Domestic
Equity Funds — 71.2% |
|
|
Avantis
Real Estate ETF |
154,326 |
|
$ |
6,268,722 |
|
Avantis
U.S. Equity ETF |
1,239,563 |
|
95,136,460 |
|
Avantis
U.S. Large Cap Value ETF |
604,952 |
|
33,060,627 |
|
Avantis
U.S. Small Cap Equity ETF |
232,721 |
|
10,879,707 |
|
Avantis
U.S. Small Cap Value ETF |
138,025 |
|
11,206,249 |
|
|
|
156,551,765 |
|
International
Equity Funds — 28.7% |
|
|
Avantis
Emerging Markets Equity ETF |
252,014 |
|
13,628,917 |
|
Avantis
Emerging Markets Value ETF |
205,912 |
|
9,058,069 |
|
Avantis
International Equity ETF |
392,384 |
|
22,546,385 |
|
Avantis
International Large Cap Value ETF |
233,206 |
|
11,412,495 |
|
Avantis
International Small Cap Equity ETF |
43,911 |
|
2,147,573 |
|
Avantis
International Small Cap Value ETF |
71,755 |
|
4,246,461 |
|
|
|
63,039,900 |
|
TOTAL
UNDERLYING FUNDS
(Cost
$206,262,181) |
|
219,591,665 |
|
SHORT-TERM
INVESTMENTS — 0.1% |
|
|
Money
Market Funds — 0.1% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class (Cost $204,610) |
204,610 |
|
204,610 |
|
TOTAL
INVESTMENT SECURITIES — 100.0%
(Cost
$206,466,791) |
|
219,796,275 |
|
OTHER
ASSETS AND LIABILITIES† |
|
12,520 |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
219,808,795 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
†Category
is less than 0.05% of total net assets.
(1)Investments
are funds within the American Century Investments family of funds and are
considered affiliated funds.
See
Notes to Financial Statements.
AUGUST 31,
2023
|
|
|
|
|
|
|
|
|
Avantis
All Equity Markets Value ETF |
|
|
|
Shares |
Value |
UNDERLYING
FUNDS(1)
— 99.9% |
|
|
Domestic
Equity Funds — 60.6% |
|
|
Avantis
U.S. Large Cap Value ETF |
135,136 |
|
$ |
7,385,183 |
|
Avantis
U.S. Small Cap Value ETF |
46,438 |
|
3,770,301 |
|
|
|
11,155,484 |
|
International
Equity Funds — 39.3% |
|
|
Avantis
Emerging Markets Value ETF |
40,557 |
|
1,784,103 |
|
Avantis
International Large Cap Value ETF |
73,704 |
|
3,606,882 |
|
Avantis
International Small Cap Value ETF |
31,091 |
|
1,839,965 |
|
|
|
7,230,950 |
|
TOTAL
UNDERLYING FUNDS
(Cost
$18,306,818) |
|
18,386,434 |
|
SHORT-TERM
INVESTMENTS — 0.1% |
|
|
Money
Market Funds — 0.1% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class
(Cost
$16,149) |
16,149 |
|
16,149 |
|
TOTAL
INVESTMENT SECURITIES — 100.0%
(Cost
$18,322,967) |
|
18,402,583 |
|
OTHER
ASSETS AND LIABILITIES† |
|
2,628 |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
18,405,211 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
†Category
is less than 0.05% of total net assets.
(1)Investments
are funds within the American Century Investments family of funds and are
considered affiliated funds.
See
Notes to Financial Statements.
AUGUST 31,
2023
|
|
|
|
|
|
|
|
|
Avantis
All International Markets Equity ETF |
|
|
|
Shares |
Value |
UNDERLYING
FUNDS(1)
— 99.9% |
|
|
International
Equity Funds — 99.9% |
|
|
Avantis
Emerging Markets Equity ETF |
2,105 |
|
$ |
113,838 |
|
Avantis
Emerging Markets Value ETF |
1,735 |
|
76,323 |
|
Avantis
International Equity ETF |
4,575 |
|
262,879 |
|
Avantis
International Large Cap Value ETF |
2,705 |
|
132,376 |
|
Avantis
International Small Cap Value ETF |
910 |
|
53,854 |
|
TOTAL
UNDERLYING FUNDS
(Cost
$647,893) |
|
639,270 |
|
SHORT-TERM
INVESTMENTS — 0.1% |
|
|
Money
Market Funds — 0.1% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class
(Cost
$540) |
540 |
|
540 |
|
TOTAL
INVESTMENT SECURITIES — 100.0%
(Cost
$648,433) |
|
639,810 |
|
OTHER
ASSETS AND LIABILITIES† |
|
(12) |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
639,798 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
†Category
is less than 0.05% of total net assets.
(1)Investments
are funds within the American Century Investments family of funds and are
considered affiliated funds.
See
Notes to Financial Statements.
AUGUST 31,
2023
|
|
|
|
|
|
|
|
|
Avantis
All International Markets Value ETF |
|
|
|
Shares |
Value |
UNDERLYING
FUNDS(1)
— 99.9% |
|
|
International
Equity Funds — 99.9% |
|
|
Avantis
Emerging Markets Value ETF |
2,592 |
|
$ |
114,022 |
|
Avantis
International Large Cap Value ETF |
3,681 |
|
180,139 |
|
Avantis
International Small Cap Value ETF |
1,551 |
|
91,788 |
|
TOTAL
UNDERLYING FUNDS
(Cost
$382,298) |
|
385,949 |
|
SHORT-TERM
INVESTMENTS — 0.1% |
|
|
Money
Market Funds — 0.1% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class
(Cost
$324) |
324 |
|
324 |
|
TOTAL
INVESTMENT SECURITIES — 100.0%
(Cost
$382,622) |
|
386,273 |
|
OTHER
ASSETS AND LIABILITIES† |
|
(7) |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
386,266 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
†Category
is less than 0.05% of total net assets.
(1)Investments
are funds within the American Century Investments family of funds and are
considered affiliated funds.
See
Notes to Financial Statements.
AUGUST 31,
2023
|
|
|
|
|
|
|
|
|
Avantis
Moderate Allocation ETF |
|
|
|
Shares |
Value |
UNDERLYING
FUNDS(1)
— 99.9% |
|
|
Domestic
Equity Funds — 47.6% |
|
|
Avantis
Real Estate ETF |
997 |
|
$ |
40,498 |
|
Avantis
U.S. Equity ETF |
7,742 |
|
594,198 |
|
Avantis
U.S. Large Cap Value ETF |
3,787 |
|
206,960 |
|
Avantis
U.S. Small Cap Equity ETF |
1,457 |
|
68,115 |
|
Avantis
U.S. Small Cap Value ETF |
846 |
|
68,687 |
|
|
|
978,458 |
|
Domestic
Fixed Income Funds — 33.0% |
|
|
Avantis
Core Fixed Income ETF |
11,105 |
|
453,195 |
|
Avantis
Short-Term Fixed Income ETF |
4,935 |
|
226,368 |
|
|
|
679,563 |
|
International
Equity Funds — 19.3% |
|
|
Avantis
Emerging Markets Equity ETF |
1,614 |
|
87,285 |
|
Avantis
Emerging Markets Value ETF |
1,342 |
|
59,034 |
|
Avantis
International Equity ETF |
2,560 |
|
147,098 |
|
Avantis
International Large Cap Value ETF |
1,510 |
|
73,895 |
|
Avantis
International Small Cap Value ETF |
488 |
|
28,880 |
|
|
|
396,192 |
|
TOTAL
UNDERLYING FUNDS
(Cost
$2,049,433) |
|
2,054,213 |
|
SHORT-TERM
INVESTMENTS — 0.4% |
|
|
Money
Market Funds — 0.4% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class
(Cost
$8,529) |
8,529 |
|
8,529 |
|
TOTAL
INVESTMENT SECURITIES — 100.3%
(Cost
$2,057,962) |
|
2,062,742 |
|
OTHER
ASSETS AND LIABILITIES — (0.3)% |
|
(5,155) |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
2,057,587 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
(1)Investments
are funds within the American Century Investments family of funds and are
considered affiliated funds.
See
Notes to Financial Statements.
|
|
|
Statements
of Assets and Liabilities |
|
|
|
|
|
|
|
|
|
AUGUST
31, 2023 |
|
|
Avantis
All Equity Markets ETF |
Avantis
All Equity Markets Value ETF |
Assets |
|
Investment
securities - affiliates, at value (cost of $206,262,181 and $18,306,818,
respectively) |
$ |
219,591,665 |
|
$ |
18,386,434 |
|
Investment
securities - unaffiliated, at value (cost of $204,610 and $16,149,
respectively) |
204,610 |
|
16,149 |
|
Total
investment securities, at value (cost of $206,466,791 and $18,322,967,
respectively) |
219,796,275 |
|
18,402,583 |
|
Receivable
for capital shares sold |
3,971,253 |
|
1,710,773 |
|
Interest
receivable |
879 |
|
56 |
|
Securities
lending receivable |
3,557 |
|
— |
|
|
223,771,964 |
|
20,113,412 |
|
|
|
|
Liabilities |
|
|
Payable
for investments purchased |
3,957,929 |
|
1,707,829 |
|
Accrued
management fees |
5,240 |
|
372 |
|
|
3,963,169 |
|
1,708,201 |
|
|
|
|
Net
Assets |
$ |
219,808,795 |
|
$ |
18,405,211 |
|
|
|
|
Shares
outstanding (unlimited number of shares authorized) |
3,605,000 |
|
350,000 |
|
|
|
|
Net
Asset Value Per Share |
$ |
60.97 |
|
$ |
52.59 |
|
|
|
|
Net
Assets Consist of: |
|
|
Capital
paid in |
$ |
206,551,033 |
|
$ |
18,325,595 |
|
Distributable
earnings (loss) |
13,257,762 |
|
79,616 |
|
|
$ |
219,808,795 |
|
$ |
18,405,211 |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
AUGUST
31, 2023 |
|
|
Avantis
All International Markets Equity ETF |
Avantis
All International Markets Value ETF |
Assets |
|
Investment
securities - affiliates, at value (cost of $647,893 and $382,298,
respectively) |
$ |
639,270 |
|
$ |
385,949 |
|
Investment securities - unaffiliated, at value
(cost of $540 and $324, respectively) |
540 |
|
324 |
|
Total
investment securities, at value (cost of $648,433 and $382,622,
respectively) |
639,810 |
|
386,273 |
|
Interest
receivable |
2 |
|
1 |
|
|
639,812 |
|
386,274 |
|
|
|
|
Liabilities |
|
|
Accrued
management fees |
14 |
|
8 |
|
|
|
|
Net
Assets |
$ |
639,798 |
|
$ |
386,266 |
|
|
|
|
Shares
outstanding (unlimited number of shares authorized) |
12,500 |
|
7,500 |
|
|
|
|
Net
Asset Value Per Share |
$ |
51.18 |
|
$ |
51.50 |
|
|
|
|
Net
Assets Consist of: |
|
|
Capital
paid in |
$ |
648,421 |
|
$ |
382,615 |
|
Distributable
earnings (loss) |
(8,623) |
|
3,651 |
|
|
$ |
639,798 |
|
$ |
386,266 |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
AUGUST
31, 2023 |
|
Avantis
Moderate Allocation ETF |
Assets |
Investment
securities - affiliates, at value (cost of $2,049,433) |
$ |
2,054,213 |
|
Investment securities - unaffiliated, at value
(cost of $8,529) |
8,529 |
|
Total
investment securities, at value (cost of $2,057,962) |
2,062,742 |
|
Receivable
for capital shares sold |
128,715 |
|
Interest
receivable |
7 |
|
|
2,191,464 |
|
|
|
Liabilities |
|
Payable
for investments purchased |
133,846 |
|
Accrued
management fees |
31 |
|
|
133,877 |
|
|
|
Net
Assets |
$ |
2,057,587 |
|
|
|
Shares
outstanding (unlimited number of shares authorized) |
40,000 |
|
|
|
Net
Asset Value Per Share |
$ |
51.44 |
|
|
|
Net
Assets Consist of: |
|
Capital
paid in |
$ |
2,051,785 |
|
Distributable
earnings (loss) |
5,802 |
|
|
$ |
2,057,587 |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
PERIOD
ENDED AUGUST 31, 2023 |
|
|
Avantis
All
Equity
Markets
ETF(1) |
Avantis
All
Equity
Markets
Value
ETF(2) |
Investment
Income (Loss) |
|
Income: |
|
|
Income
distributions from underlying funds |
$ |
2,262,908 |
|
$ |
— |
|
Securities
lending, net |
23,553 |
|
— |
|
Interest |
5,972 |
|
79 |
|
|
2,292,433 |
|
79 |
|
|
|
|
Expenses: |
|
|
Management
fees |
57,074 |
|
918 |
|
Trustees'
fees and expenses |
— |
|
36 |
|
|
57,074 |
|
954 |
|
Fees
waived |
(22,829) |
|
(367) |
|
|
34,245 |
|
587 |
|
|
|
|
Net
investment income (loss) |
2,258,188 |
|
(508) |
|
|
|
|
Realized
and Unrealized Gain (Loss) |
|
|
Sales
of investments in underlying funds |
455,735 |
|
— |
|
Change
in net unrealized appreciation (depreciation) on investments in underlying
funds |
13,329,484 |
|
79,616 |
|
|
|
|
Net
realized and unrealized gain (loss) |
13,785,219 |
|
79,616 |
|
|
|
|
Net
Increase (Decrease) in Net Assets Resulting from Operations |
$ |
16,043,407 |
|
$ |
79,108 |
|
(1)September
27, 2022 (fund inception) through August 31, 2023.
(2)June
27, 2023 (fund inception) through August 31, 2023.
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
PERIOD
ENDED AUGUST 31, 2023 |
|
|
Avantis
All International Markets Equity ETF(1) |
Avantis
All International Markets Value ETF(1) |
Investment
Income (Loss) |
|
Income: |
|
|
Interest |
$ |
3 |
|
$ |
2 |
|
|
|
|
Expenses: |
|
|
Management
fees |
33 |
|
25 |
|
Trustees'
fees and expenses |
2 |
|
1 |
|
|
35 |
|
26 |
|
Fees
waived |
(13) |
|
(10) |
|
|
22 |
|
16 |
|
|
|
|
Net
investment income (loss) |
(19) |
|
(14) |
|
|
|
|
Realized
and Unrealized Gain (Loss) |
|
|
Sales
of investments in underlying funds |
(3,929) |
|
(5,632) |
|
Change
in net unrealized appreciation (depreciation) on investments in underlying
funds |
(8,623) |
|
3,651 |
|
|
|
|
Net
realized and unrealized gain (loss) |
(12,552) |
|
(1,981) |
|
|
|
|
Net
Increase (Decrease) in Net Assets Resulting from Operations |
$ |
(12,571) |
|
$ |
(1,995) |
|
(1)June
27, 2023 (fund inception) through August 31, 2023.
See
Notes to Financial Statements.
|
|
|
|
|
|
PERIOD
ENDED AUGUST 31, 2023 |
|
|
Avantis
Moderate
Allocation
ETF(1) |
Investment
Income (Loss) |
|
Income: |
|
Income
distributions from underlying funds |
$ |
1,060 |
|
Interest |
9 |
|
|
1,069 |
|
|
|
Expenses: |
|
Management
fees |
74 |
|
Trustees'
fees and expenses |
3 |
|
|
77 |
|
Fees
waived |
(30) |
|
|
47 |
|
|
|
Net
investment income (loss) |
1,022 |
|
|
|
Change
in net unrealized appreciation (depreciation) on investments in underlying
funds |
4,780 |
|
|
|
Net
Increase (Decrease) in Net Assets Resulting from Operations |
$ |
5,802 |
|
(1)June
27, 2023 (fund inception) through August 31, 2023.
See
Notes to Financial Statements.
|
|
|
Statements
of Changes in Net Assets |
|
|
|
|
|
|
|
|
|
PERIOD
ENDED AUGUST 31, 2023 |
|
|
Avantis
All Equity Markets ETF(1) |
Avantis
All Equity Markets Value ETF(2) |
Increase
(Decrease) in Net Assets |
|
|
Operations |
|
Net
investment income (loss) |
$ |
2,258,188 |
|
$ |
(508) |
|
Net
realized gain (loss) |
455,735 |
|
— |
|
Change
in net unrealized appreciation (depreciation) |
13,329,484 |
|
79,616 |
|
Net
increase (decrease) in net assets resulting from operations |
16,043,407 |
|
79,108 |
|
|
|
|
Distributions
to Shareholders |
|
|
From
earnings |
(2,251,161) |
|
— |
|
|
|
|
Capital
Share Transactions |
|
|
Proceeds
from shares sold |
212,007,588 |
|
18,326,103 |
|
Payments
for shares redeemed |
(5,991,039) |
|
— |
|
Net
increase (decrease) in net assets from capital share
transactions |
206,016,549 |
|
18,326,103 |
|
|
|
|
Net
increase (decrease) in net assets |
219,808,795 |
|
18,405,211 |
|
|
|
|
Net
Assets |
|
|
End
of period |
$ |
219,808,795 |
|
$ |
18,405,211 |
|
|
|
|
Transactions
in Shares of the Funds |
|
|
Sold |
3,710,000 |
|
350,000 |
|
Redeemed |
(105,000) |
|
— |
|
Net
increase (decrease) in shares of the funds |
3,605,000 |
|
350,000 |
|
(1)September
27, 2022 (fund inception) through August 31, 2023.
(2)June
27, 2023 (fund inception) through August 31, 2023.
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
PERIOD
ENDED AUGUST 31, 2023 |
|
|
Avantis
All International Markets Equity ETF(1) |
Avantis
All International Markets Value ETF(1) |
Increase
(Decrease) in Net Assets |
|
|
Operations |
|
Net
investment income (loss) |
$ |
(19) |
|
$ |
(14) |
|
Net
realized gain (loss) |
(3,929) |
|
(5,632) |
|
Change
in net unrealized appreciation (depreciation) |
(8,623) |
|
3,651 |
|
Net
increase (decrease) in net assets resulting from operations |
(12,571) |
|
(1,995) |
|
|
|
|
Capital
Share Transactions |
|
|
Proceeds
from shares sold |
901,350 |
|
762,542 |
|
Payments
for shares redeemed |
(248,981) |
|
(374,281) |
|
Net
increase (decrease) in net assets from capital share
transactions |
652,369 |
|
388,261 |
|
|
|
|
Net
increase (decrease) in net assets |
639,798 |
|
386,266 |
|
|
|
|
Net
Assets |
|
|
End
of period |
$ |
639,798 |
|
$ |
386,266 |
|
|
|
|
Transactions
in Shares of the Funds |
|
|
Sold |
17,500 |
|
15,000 |
|
Redeemed |
(5,000) |
|
(7,500) |
|
Net
increase (decrease) in shares of the funds |
12,500 |
|
7,500 |
|
(1)June
27, 2023 (fund inception) through August 31, 2023.
See
Notes to Financial Statements.
|
|
|
|
|
|
PERIOD
ENDED AUGUST 31, 2023 |
|
Avantis
Moderate Allocation ETF(1) |
Increase
(Decrease) in Net Assets |
|
Operations |
Net
investment income (loss) |
$ |
1,022 |
|
Change
in net unrealized appreciation (depreciation) |
4,780 |
|
Net
increase (decrease) in net assets resulting from operations |
5,802 |
|
|
|
Capital
Share Transactions |
|
Proceeds
from shares sold |
2,051,785 |
|
|
|
Net
increase (decrease) in net assets |
2,057,587 |
|
|
|
Net
Assets |
|
End
of period |
$ |
2,057,587 |
|
|
|
Transactions
in Shares of the Fund |
|
Sold |
40,000 |
|
(1)June
27, 2023 (fund inception) through August 31, 2023.
See
Notes to Financial Statements.
|
|
|
Notes
to Financial Statements |
AUGUST 31,
2023
1.
Organization
American
Century ETF Trust (the trust) was registered as a Delaware statutory trust in
2017 and is registered under the Investment Company Act of 1940, as amended (the
1940 Act), as an open-end management investment company. Avantis All Equity
Markets ETF, Avantis All Equity Markets Value ETF, Avantis All International
Markets Equity ETF, Avantis All International Markets Value ETF and Avantis
Moderate Allocation ETF (collectively, the funds) are five funds in a series
issued by the trust. The funds each operate as a “fund of funds,” meaning
substantially all of the funds' assets will be invested in a combination of
Avantis exchange-traded funds (the underlying funds). Avantis All Equity Markets
ETF, Avantis All Equity Markets Value ETF, Avantis All International Markets
Equity ETF and Avantis All International Markets Value ETF underlying funds
represent a broadly diversified basket of equity securities. Avantis Moderate
Allocation ETF underlying funds represent a broadly diversified basket of equity
and fixed income securities. The funds will assume the risks associated
with the underlying funds. Additional information and attributes of each
underlying fund are available at avantisinvestors.com. Each of the funds'
investment objective is to seek long-term capital appreciation. Shares of the
funds are listed for trading on the NYSE Arca, Inc. Avantis All Equity Markets
ETF incepted on September 27, 2022. Avantis All Equity Markets Value ETF,
Avantis All International Markets Equity ETF, Avantis All International Markets
Value ETF and Avantis Moderate Allocation ETF incepted on June 27,
2023.
2.
Significant Accounting Policies
The
following is a summary of significant accounting policies consistently followed
by the funds in preparation of their financial statements. Each fund is an
investment company and follows accounting and reporting guidance in accordance
with accounting principles generally accepted in the United States of America.
This may require management to make certain estimates and assumptions at the
date of the financial statements. Actual results could differ from these
estimates. Management evaluated the impact of events or transactions occurring
through the date the financial statements were issued that would merit
recognition or disclosure.
Investment
Valuations — The
funds determine the fair value of their investments and
compute their net asset value (NAV) per share at the close of regular
trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on
each day the NYSE is open. The value of investments of the funds are
determined by American Century Investment Management, Inc. (ACIM) (the
investment advisor), as the valuation designee, pursuant to its valuation
policies and procedures. The Board of Trustees oversees the valuation designee
and reviews its valuation policies and procedures at least annually.
Open-end
management investment companies are valued at the reported NAV. Exchange-traded
funds are listed or traded on a domestic securities exchange and are valued at
the last reported sales price or at the official closing price as provided by
the exchange.
Security
Transactions —
Security transactions are accounted for as of the trade date. Net realized gains
and losses are determined on the identified cost basis, which is also used for
federal income tax purposes.
Investment
Income — Income
and capital gain distributions, if any, from the underlying funds are recorded
as of the ex-dividend date. Long-term capital gain distributions, if any, from
the underlying funds are a component of net realized gain (loss). Interest
income is recorded on the accrual basis and includes accretion of discounts and
amortization of premiums. Securities lending income is net of fees and rebates
earned by the lending agent for its services.
Income
Tax Status —
It is each fund's policy to distribute substantially all net investment
income and net realized gains to shareholders and to otherwise qualify as a
regulated investment company under provisions of the Internal Revenue Code.
Accordingly, no provision has been made for income taxes. The funds file
U.S. federal, state, local and non-U.S. tax returns as applicable. The funds'
tax returns are subject to examination by the relevant taxing authority until
expiration of the applicable statute of limitations, which is generally three
years from the date of filing but can be longer in certain jurisdictions. At
this time, management believes there are no uncertain tax positions which, based
on their technical merit, would not be sustained upon examination and for which
it is reasonably possible that the total amounts of unrecognized tax benefits
will significantly change in the next twelve months.
Distributions
to Shareholders — Distributions
from net investment income, if any, are generally declared and paid
semiannually. Distributions from net realized gains, if any, are generally
declared and paid annually.
Indemnifications
—
Under the trust’s organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the funds. In addition, in the normal course of business, the
funds enter into contracts that provide general indemnifications. The
maximum exposure under these arrangements is unknown as this would involve
future claims that may be made against a fund. The risk of material loss from
such claims is considered by management to be remote.
Securities
Lending —
Securities are lent to qualified financial institutions and brokers. State
Street Bank & Trust Co. serves as securities lending agent to the funds
pursuant to a Securities Lending Agreement. The lending of securities exposes
the funds to risks such as: the borrowers may fail to return the loaned
securities, the borrowers may not be able to provide additional collateral, the
funds may experience delays in recovery of the loaned securities or delays in
access to collateral, or the funds may experience losses related to the
investment collateral. To minimize certain risks, loan counterparties pledge
collateral in the form of cash and/or securities. The lending agent has agreed
to indemnify the funds in the case of default of any securities borrowed. Cash
collateral received is invested in the State Street Navigator Securities Lending
Government Money Market Portfolio, a money market mutual fund registered under
the 1940 Act. The loans may also be secured by U.S. government securities in an
amount at least equal to the market value of the securities loaned, plus accrued
interest and dividends, determined on a daily basis and adjusted accordingly. By
lending securities, the funds seek to increase their net investment
income through the receipt of interest and fees. Such income is reflected
separately within the Statements of Operations. The value of loaned securities
and related collateral outstanding at period end, if any, are shown on a gross
basis within the Schedules of Investments and Statements of Assets and
Liabilities.
3.
Fees and Transactions with Related Parties
Certain
officers and trustees of the trust are also officers and/or directors of
American Century Companies, Inc. (ACC). The trust's investment advisor, ACIM,
and the trust’s administrator, American Century Services, LLC, are wholly owned,
directly or indirectly, by ACC.
Management
Fees — The
trust has entered into a management agreement with ACIM, under which ACIM
provides the funds with investment advisory and management services in exchange
for a single, unified management fee (the fee). The agreement provides that ACIM
will pay all expenses of managing and operating the funds, except brokerage and
other transaction fees and expenses relating to the acquisition and disposition
of portfolio securities, acquired fund fees and expenses, interest, taxes,
litigation expenses, extraordinary expenses and, in the case of certain funds,
fees and expenses of the independent trustees (including legal counsel fees).
The fee is computed and accrued daily based on the daily net assets of each fund
and paid monthly in arrears. During the period ended August 31, 2023, the
investment advisor agreed to waive 0.02% of each fund's management
fee. The investment advisor expects this waiver to continue until June 21, 2024
for Avantis All Equity Markets Value ETF, Avantis All International Markets
Equity ETF, Avantis All International Markets Value ETF and Avantis Moderate
Allocation ETF and July 31, 2024 for Avantis All Equity Markets ETF and cannot
terminate it prior to such date without the approval of the Board of Trustees.
The
annual management fee and the effective annual management fee after waiver for
each fund for the period ended August 31, 2023 are as follows:
|
|
|
|
|
|
|
|
|
|
|
Effective
Annual Management Fee |
|
Annual
Management Fee |
After
Waiver |
Avantis
All Equity Markets ETF |
0.05% |
0.03% |
Avantis
All Equity Markets Value ETF |
0.05% |
0.03% |
Avantis
All International Markets Equity ETF |
0.05% |
0.03% |
Avantis
All International Markets Value ETF |
0.05% |
0.03% |
Avantis
Moderate Allocation ETF |
0.05% |
0.03% |
Trustees'
Fees and Expenses — The
Board of Trustees is responsible for overseeing the investment advisor's
management and operations of the funds. The trustees receive detailed
information about the funds and their investment advisor regularly throughout
the year, and meet at least quarterly with management of the investment advisor
to review reports about fund operations. The funds' officers do not receive
compensation from the funds.
Acquired
Fund Fees and Expenses — Each
fund will indirectly realize its pro rata share of the fees and expenses of the
underlying funds in which it invests. These fees and expenses are already
reflected in the valuation of the underlying funds.
4.
Investment Transactions
Purchases
and sales of investment securities, excluding short-term investments and in kind
transactions, for the period ended August 31, 2023 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avantis
All Equity Markets ETF(1) |
Avantis
All Equity Markets Value ETF(2) |
Avantis
All International Markets Equity ETF(2) |
Avantis
All International Markets Value ETF(2) |
Avantis
Moderate Allocation ETF(2) |
Purchases |
$4,091,799 |
— |
— |
— |
$14,020 |
Sales |
$2,189,556 |
— |
— |
— |
— |
(1)September
27, 2022 (fund inception) through August 31, 2023.
(2)June
27, 2023 (fund inception) through August 31, 2023.
Securities
received or delivered in kind through subscriptions and redemptions and in kind
net realized gain (loss) for the period ended August 31, 2023 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
In
kind Subscriptions |
In
kind Redemptions |
In
kind
Net
Realized
Gain/(Loss)* |
Avantis
All Equity Markets ETF(1) |
$207,915,725 |
$4,011,521 |
$534,484 |
Avantis
All Equity Markets Value ETF(2) |
$18,306,818 |
— |
— |
Avantis
All International Markets Equity ETF(2) |
$900,530 |
$248,709 |
$(3,928) |
Avantis
All International Markets Value ETF(2) |
$761,828 |
$373,898 |
$(5,632) |
Avantis
Moderate Allocation ETF(2) |
$2,035,413 |
— |
— |
*Net
realized gain (loss) on in kind transactions are not considered taxable for
federal income tax purposes.
(1)September
27, 2022 (fund inception) through August 31, 2023.
(2)June
27, 2023 (fund inception) through August 31, 2023.
5.
Capital Share Transactions
Each
fund’s shares may only be bought and sold in a secondary market through a
broker-dealer at a market price. Because ETF shares trade at market prices
rather than NAV, shares may trade at a price greater than NAV (a premium) or
less than NAV (a discount). Each fund issues and redeems shares at
their NAV only in aggregations of a specified number of shares (a creation
unit) generally in exchange for a designated portfolio of securities and/or cash
(including any portion of such securities for which cash may be substituted).
Authorized participants may be required to pay an additional variable charge to
cover certain brokerage, tax, foreign exchange, execution, market impact and
other costs and expenses related to the execution of trades resulting from
creation unit transactions. Such variable charges, if any, are included in other
capital within the Statements of Changes in Net Assets.
6.
Fair Value Measurements
The
funds' investment valuation process is based on several considerations and
may use multiple inputs to determine the fair value of the investments held by
the funds. In conformity with accounting principles generally accepted in the
United States of America, the inputs used to determine a valuation are
classified into three broad levels.
•Level
1 valuation inputs consist of unadjusted quoted prices in an active market for
identical investments.
•Level
2 valuation inputs consist of direct or indirect observable market data
(including quoted prices for comparable investments, evaluations of subsequent
market events, interest rates, prepayment speeds, credit risk, etc.). These
inputs also consist of quoted prices for identical investments initially
expressed in local currencies that are adjusted through translation into U.S.
dollars.
•Level
3 valuation inputs consist of unobservable data (including a fund’s own
assumptions).
The
level classification is based on the lowest level input that is significant to
the fair valuation measurement. The valuation inputs are not necessarily an
indication of the risks associated with investing in these securities or other
financial instruments.
As
of period end, the funds' investment securities were classified as Level 1. The
Schedules of Investments provide additional information on the funds' portfolio
holdings.
7. Federal
Tax Information
The
tax character of distributions paid during the period ended August 31, 2023 were
as follows:
|
|
|
|
|
|
|
|
|
|
2023 |
|
Distributions
Paid From: |
|
Ordinary Income |
Long-term
Capital Gains |
Avantis
All Equity Markets ETF(1) |
$ |
2,251,161 |
— |
Avantis
All Equity Markets Value ETF(2) |
— |
— |
Avantis
All International Markets Equity ETF(2) |
— |
— |
Avantis
All International Markets Value ETF(2) |
— |
— |
Avantis
Moderate Allocation ETF(2) |
— |
— |
(1)September
27, 2022 (fund inception) through August 31, 2023.
(2)June
27, 2023 (fund inception) through August 31, 2023.
The
book-basis character of distributions made during the year from net investment
income or net realized gains may differ from their ultimate characterization for
federal income tax purposes. These differences reflect the differing character
of certain income items and net realized gains and losses for financial
statement and tax purposes, and may result in reclassification among certain
capital accounts on the financial statements.
The
reclassifications, which are primarily due to in kind transactions and net
operating losses, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avantis
All Equity Markets ETF |
Avantis
All Equity Markets Value ETF |
Avantis
All International Markets Equity ETF |
Avantis
All International Markets Value ETF |
Avantis
Moderate Allocation ETF |
Capital
paid in |
$ |
534,484 |
|
$ |
(508) |
|
$ |
(3,948) |
|
$ |
(5,646) |
|
— |
|
Distributable
earnings (loss) |
$ |
(534,484) |
|
$ |
508 |
|
$ |
3,948 |
|
$ |
5,646 |
|
— |
|
As
of period end, the federal tax cost of investments and the components of
distributable earnings on a tax-basis were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avantis
All Equity Markets ETF |
Avantis
All Equity Markets Value ETF |
Avantis
All International Markets Equity ETF |
Avantis
All International Markets Value ETF |
Avantis
Moderate Allocation ETF |
Federal
tax cost of investments |
$ |
206,466,958 |
|
$ |
18,322,967 |
|
$ |
648,433 |
|
$ |
382,622 |
|
$ |
2,057,962 |
|
Gross
tax appreciation of investments |
$ |
13,499,914 |
|
$ |
107,864 |
|
$ |
93 |
|
$ |
3,651 |
|
$ |
7,383 |
|
Gross
tax depreciation of investments |
(170,597) |
|
(28,248) |
|
(8,716) |
|
— |
|
(2,603) |
|
Net
tax appreciation (depreciation) of investments |
$ |
13,329,317 |
|
$ |
79,616 |
|
$ |
(8,623) |
|
$ |
3,651 |
|
$ |
4,780 |
|
Undistributed
ordinary income |
$ |
7,027 |
|
— |
|
— |
|
— |
|
$ |
1,022 |
|
Accumulated
short-term capital losses |
$ |
(78,582) |
|
— |
|
— |
|
— |
|
— |
|
The
difference between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of losses on wash
sales for Avantis All Equity Markets ETF. The cost of investments for federal
income tax purposes was the same as the cost for financial reporting purposes
for Avantis All Equity Markets Value ETF, Avantis All International Markets
Equity ETF, Avantis All International Markets Value ETF and Avantis Moderate
Allocation ETF.
Accumulated
capital losses represent net capital loss carryovers that may be used to offset
future realized capital gains for federal income tax purposes. The capital loss
carryovers may be carried forward for an unlimited period. Future capital loss
carryover utilization in any given year may be subject to Internal Revenue Code
limitations.
8.
Investments in Underlying Funds
The
funds do not invest in the underlying funds for the purpose of exercising
management or control; however, investments by the funds within their
investment strategies may represent a significant portion of the underlying
funds’ net assets. As of period end, All Equity Markets ETF owned 55% of the
shares of
Avantis
International Small Cap Equity ETF.
9.
Risk Factors
The
value of the funds’ shares will go up and down based on the performance of the
underlying funds in which they invest. The value of the underlying funds’ shares
will, in turn, fluctuate based on the performance of the securities they own and
other factors generally affecting the securities market. Market risks, including
political, regulatory, economic and social developments, can affect the value of
the funds’ investments. Natural disasters, public health emergencies,
war, terrorism and other unforeseeable events may lead to increased market
volatility and may have adverse long-term effects on world economies and markets
generally.
10.
Affiliated Fund Transactions
A
summary of transactions for each underlying fund for the period ended August 31,
2023 follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund/Underlying
Fund |
Beginning Value |
Purchase Cost |
Sales Cost |
Change
in Net Unrealized Appreciation (Depreciation) |
Ending Value |
Ending Shares |
Net Realized Gain (Loss) |
Distributions
Received(1) |
Avantis
All Equity Markets ETF (Amounts in thousands) |
|
|
|
|
|
|
Avantis
Real Estate ETF |
— |
|
$ |
6,495 |
|
$ |
108 |
|
$ |
(118) |
|
$ |
6,269 |
|
154 |
|
$ |
11 |
|
$ |
79 |
|
Avantis
U.S. Equity ETF |
— |
|
90,594 |
|
3,133 |
|
7,675 |
|
95,136 |
|
1,240 |
|
168 |
|
656 |
|
Avantis
U.S. Large Cap Value ETF |
— |
|
31,671 |
|
546 |
|
1,936 |
|
33,061 |
|
605 |
|
85 |
|
303 |
|
Avantis
U.S. Small Cap Equity ETF |
— |
|
10,596 |
|
175 |
|
459 |
|
10,880 |
|
233 |
|
25 |
|
57 |
|
Avantis
U.S. Small Cap Value ETF |
— |
|
10,743 |
|
174 |
|
637 |
|
11,206 |
|
138 |
|
29 |
|
91 |
|
Avantis
Emerging Markets Equity ETF |
— |
|
13,438 |
|
353 |
|
544 |
|
13,629 |
|
252 |
|
20 |
|
188 |
|
Avantis
Emerging Markets Value ETF |
— |
|
8,953 |
|
237 |
|
342 |
|
9,058 |
|
206 |
|
13 |
|
148 |
|
Avantis
International Equity ETF |
— |
|
22,138 |
|
678 |
|
1,086 |
|
22,546 |
|
392 |
|
56 |
|
410 |
|
Avantis
International Large Cap Value ETF |
— |
|
11,012 |
|
207 |
|
608 |
|
11,413 |
|
233 |
|
37 |
|
238 |
|
Avantis
International Small Cap Equity ETF |
— |
|
2,200 |
|
— |
|
(52) |
|
2,148 |
|
44 |
|
— |
|
— |
|
Avantis
International Small Cap Value ETF |
— |
|
4,168 |
|
134 |
|
212 |
|
4,246 |
|
72 |
|
12 |
|
93 |
|
|
— |
|
$ |
212,008 |
|
$ |
5,745 |
|
$ |
13,329 |
|
$ |
219,592 |
|
3,569 |
|
$ |
456 |
|
$ |
2,263 |
|
(1)Distributions
received includes distributions from net investment income and from capital
gains, if any.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund/Underlying
Fund |
Beginning Value |
Purchase Cost |
Sales Cost |
Change
in Net Unrealized Appreciation (Depreciation) |
Ending Value |
Ending Shares |
Net Realized Gain (Loss) |
Distributions
Received(1) |
Avantis
All Equity Markets Value ETF (Amounts in thousands) |
|
|
|
|
|
|
|
Avantis
U.S. Large Cap Value ETF |
— |
|
$ |
7,322 |
|
— |
|
$ |
63 |
|
$ |
7,385 |
|
135 |
|
— |
|
— |
|
Avantis
U.S. Small Cap Value ETF |
— |
|
3,731 |
|
— |
|
39 |
|
3,770 |
|
46 |
|
— |
|
— |
|
Avantis
Emerging Markets Value ETF |
— |
|
1,798 |
|
— |
|
(14) |
|
1,784 |
|
41 |
|
— |
|
— |
|
Avantis
International Large Cap Value ETF |
— |
|
3,621 |
|
— |
|
(14) |
|
3,607 |
|
74 |
|
— |
|
— |
|
Avantis
International Small Cap Value ETF |
— |
|
1,834 |
|
— |
|
6 |
|
1,840 |
|
31 |
|
— |
|
— |
|
|
— |
|
$ |
18,306 |
|
— |
|
$ |
80 |
|
$ |
18,386 |
|
327 |
|
— |
|
— |
|
(1)Distributions
received includes distributions from net investment income and from capital
gains, if any.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund/Underlying
Fund |
Beginning Value |
Purchase Cost |
Sales Cost |
Change
in Net Unrealized Appreciation (Depreciation) |
Ending Value |
Ending Shares |
Net Realized Gain (Loss) |
Distributions
Received(1) |
Avantis
All International Markets Equity ETF (Amounts in thousands) |
|
|
|
|
|
|
Avantis
Emerging Markets Equity ETF |
— |
|
$ |
162 |
|
$ |
45 |
|
$ |
(3) |
|
$ |
114 |
|
2 |
|
$ |
(1) |
|
— |
|
Avantis
Emerging Markets Value ETF |
— |
|
108 |
|
30 |
|
(2) |
|
76 |
|
2 |
|
— |
|
— |
|
Avantis
International Equity ETF |
— |
|
370 |
|
104 |
|
(3) |
|
263 |
|
5 |
|
(2) |
|
— |
|
Avantis
International Large Cap Value ETF |
— |
|
185 |
|
52 |
|
(1) |
|
132 |
|
3 |
|
(1) |
|
— |
|
Avantis
International Small Cap Value ETF |
— |
|
75 |
|
21 |
|
— |
|
54 |
|
1 |
|
— |
|
— |
|
|
— |
|
$ |
900 |
|
$ |
252 |
|
$ |
(9) |
|
$ |
639 |
|
13 |
|
$ |
(4) |
|
— |
|
(1)Distributions
received includes distributions from net investment income and from capital
gains, if any.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund/Underlying
Fund |
Beginning Value |
Purchase Cost |
Sales Cost |
Change
in Net Unrealized Appreciation (Depreciation) |
Ending Value |
Ending Shares |
Net Realized Gain (Loss) |
Distributions
Received(1) |
Avantis
All International Markets Value ETF (Amounts in thousands) |
|
|
|
|
|
|
Avantis
Emerging Markets Value ETF |
— |
|
$ |
227 |
|
$ |
113 |
|
— |
|
$ |
114 |
|
3 |
|
$ |
(2) |
|
— |
|
Avantis
International Large Cap Value ETF |
— |
|
355 |
|
177 |
|
$ |
2 |
|
180 |
|
4 |
|
(3) |
|
— |
|
Avantis
International Small Cap Value ETF |
— |
|
179 |
|
89 |
|
2 |
|
92 |
|
2 |
|
(1) |
|
— |
|
|
— |
|
$ |
761 |
|
$ |
379 |
|
$ |
4 |
|
$ |
386 |
|
9 |
|
$ |
(6) |
|
— |
|
(1)Distributions
received includes distributions from net investment income and from capital
gains, if any.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund/Underlying
Fund |
Beginning Value |
Purchase Cost |
Sales Cost |
Change
in Net Unrealized Appreciation (Depreciation) |
Ending Value |
Ending Shares |
Net Realized Gain (Loss) |
Distributions
Received(1) |
Avantis
Moderate Allocation ETF (Amounts in thousands) |
|
|
|
|
|
|
|
Avantis
Real Estate ETF |
— |
|
$ |
40 |
|
— |
|
— |
|
$ |
40 |
|
1 |
|
— |
|
— |
|
Avantis
U.S. Equity ETF |
— |
|
589 |
|
— |
|
$ |
5 |
|
594 |
|
8 |
|
— |
|
— |
|
Avantis
U.S. Large Cap Value ETF |
— |
|
205 |
|
— |
|
2 |
|
207 |
|
4 |
|
— |
|
— |
|
Avantis
U.S. Small Cap Equity ETF |
— |
|
68 |
|
— |
|
— |
|
68 |
|
1 |
|
— |
|
— |
|
Avantis
U.S. Small Cap Value ETF |
— |
|
68 |
|
— |
|
1 |
|
69 |
|
1 |
|
— |
|
— |
|
Avantis
Core Fixed Income ETF |
— |
|
453 |
|
— |
|
— |
|
453 |
|
11 |
|
— |
|
$ |
1 |
|
Avantis
Short-Term Fixed Income ETF |
— |
|
228 |
|
— |
|
(1) |
|
227 |
|
5 |
|
— |
|
— |
|
Avantis
Emerging Markets Equity ETF |
— |
|
88 |
|
— |
|
(1) |
|
87 |
|
2 |
|
— |
|
— |
|
Avantis
Emerging Markets Value ETF |
— |
|
59 |
|
— |
|
— |
|
59 |
|
1 |
|
— |
|
— |
|
Avantis
International Equity ETF |
— |
|
148 |
|
— |
|
(1) |
|
147 |
|
3 |
|
— |
|
— |
|
Avantis
International Large Cap Value ETF |
— |
|
74 |
|
— |
|
— |
|
74 |
|
2 |
|
— |
|
— |
|
Avantis
International Small Cap Value ETF |
— |
|
29 |
|
— |
|
— |
|
29 |
|
— |
|
— |
|
— |
|
|
— |
|
$ |
2,049 |
|
— |
|
$ |
5 |
|
$ |
2,054 |
|
39 |
|
— |
|
$ |
1 |
|
(1)Distributions
received includes distributions from net investment income and from capital
gains, if any.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
a Share Outstanding Throughout the Period Indicated |
Per-Share
Data |
Ratios
and Supplemental Data |
|
|
|
Income
From Investment Operations*: |
|
|
|
Ratio
to Average Net Assets of: |
|
|
|
Net
Asset Value, Beginning of Period |
Net
Investment
Income
(Loss)(1) |
Net Realized and Unrealized Gain
(Loss) |
Total
From Investment Operations |
Distributions From Net Investment Income |
Net
Asset Value, End of Period |
Total
Return(2) |
Operating
Expenses(3) |
Operating
Expenses
(before
expense
waiver)(3) |
Net Investment Income (Loss) |
Net Investment Income (Loss) (before expense waiver) |
Portfolio
Turnover
Rate(4) |
Net Assets, End
of Period (in thousands) |
Avantis
All Equity Markets ETF |
2023(5) |
$50.01 |
1.07 |
10.88 |
11.95 |
(0.99) |
$60.97 |
24.04% |
0.03%(6) |
0.05%(6) |
1.98%(6) |
1.96%(6) |
2% |
$219,809 |
|
|
|
|
Notes
to Financial Highlights |
(1)Computed
using average shares outstanding throughout the period.
(2)Total
returns are calculated based on the net asset value of the last business day.
Total returns for periods less than one year are not annualized.
(3)Ratio
of operating expenses to average net assets and ratio of operating expenses
before expense waiver to average net assets does not include any fees and
expenses of the underlying funds.
(4)Excludes
securities received or delivered in kind.
(5)September
27, 2022 (fund inception) through August 31, 2023.
(6)Annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations due to the timing of transactions in shares
of a fund in relation to income earned and/or fluctuations in the fair value of
a fund's investments.
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
a Share Outstanding Throughout the Period Indicated |
Per-Share
Data |
Ratios
and Supplemental Data |
|
|
|
Income
From Investment Operations*: |
|
|
Ratio
to Average Net Assets of: |
|
|
|
Net
Asset Value, Beginning of Period |
Net
Investment
Income
(Loss)(1) |
Net Realized and Unrealized Gain
(Loss) |
Total
From Investment Operations |
Net
Asset Value, End of Period |
Total
Return(2) |
Operating
Expenses(3) |
Operating
Expenses
(before
expense
waiver)(3) |
Net Investment Income (Loss) |
Net Investment Income (Loss) (before expense waiver) |
Portfolio
Turnover
Rate(4) |
Net Assets, End
of Period (in thousands) |
Avantis
All Equity Markets Value ETF |
2023(5) |
$50.62 |
—(6) |
1.97 |
1.97 |
$52.59 |
3.89% |
0.03%(7) |
0.05%(7) |
(0.03)%(7) |
(0.05)%(7) |
0% |
$18,405 |
|
|
|
|
Notes
to Financial Highlights |
(1)Computed
using average shares outstanding throughout the period.
(2)Total
returns are calculated based on the net asset value of the last business day.
Total returns for periods less than one year are not annualized.
(3)Ratio
of operating expenses to average net assets and ratio of operating expenses
before expense waiver to average net assets does not include any fees and
expenses of the underlying funds.
(4)Excludes
securities received or delivered in kind.
(5)June
27, 2023 (fund inception) through August 31, 2023.
(6)Per-share
amount was less than $0.005.
(7)Annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations due to the timing of transactions in shares
of a fund in relation to income earned and/or fluctuations in the fair value of
a fund's investments.
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
a Share Outstanding Throughout the Period Indicated |
Per-Share
Data |
Ratios
and Supplemental Data |
|
|
|
Income
From Investment Operations*: |
|
|
Ratio
to Average Net Assets of: |
|
|
|
Net
Asset Value, Beginning of Period |
Net
Investment
Income
(Loss)(1) |
Net Realized and Unrealized Gain
(Loss) |
Total
From Investment Operations |
Net
Asset Value, End of Period |
Total
Return(2) |
Operating
Expenses(3) |
Operating
Expenses
(before
expense
waiver)(3) |
Net Investment Income (Loss) |
Net Investment Income (Loss) (before expense waiver) |
Portfolio
Turnover
Rate(4) |
Net Assets, End
of Period (in thousands) |
Avantis
All International Markets Equity ETF |
2023(5) |
$50.43 |
—(6) |
0.75 |
0.75 |
$51.18 |
1.50% |
0.03%(7) |
0.05%(7) |
(0.03)%(7) |
(0.05)%(7) |
0% |
$640 |
|
|
|
Notes
to Financial Highlights |
(1)Computed
using average shares outstanding throughout the period.
(2)Total
returns are calculated based on the net asset value of the last business day.
Total returns for periods less than one year are not annualized.
(3)Ratio
of operating expenses to average net assets and ratio of operating expenses
before expense waiver to average net assets does not include any fees and
expenses of the underlying funds.
(4)Excludes
securities received or delivered in kind.
(5)June
27, 2023 (fund inception) through August 31, 2023.
(6)Per-share
amount was less than $0.005.
(7)Annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations due to the timing of transactions in shares
of a fund in relation to income earned and/or fluctuations in the fair value of
a fund's investments.
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
a Share Outstanding Throughout the Period Indicated |
Per-Share
Data |
Ratios
and Supplemental Data |
|
|
|
Income
From Investment Operations*: |
|
|
Ratio
to Average Net Assets of: |
|
|
|
Net
Asset Value, Beginning of Period |
Net
Investment
Income
(Loss)(1) |
Net Realized and Unrealized Gain
(Loss) |
Total
From Investment Operations |
Net
Asset Value, End of Period |
Total
Return(2) |
Operating
Expenses(3) |
Operating
Expenses
(before
expense
waiver)(3) |
Net Investment Income (Loss) |
Net Investment Income (Loss) (before expense waiver) |
Portfolio
Turnover
Rate(4) |
Net Assets, End
of Period (in thousands) |
Avantis
All International Markets Value ETF |
2023(5) |
$50.37 |
—(6) |
1.13 |
1.13 |
$51.50 |
2.26% |
0.03%(7) |
0.05%(7) |
(0.03)%(7) |
(0.05)%(7) |
0% |
$386 |
|
|
|
|
Notes
to Financial Highlights |
(1)Computed
using average shares outstanding throughout the period.
(2)Total
returns are calculated based on the net asset value of the last business day.
Total returns for periods less than one year are not annualized.
(3)Ratio
of operating expenses to average net assets and ratio of operating expenses
before expense waiver to average net assets does not include any fees and
expenses of the underlying funds.
(4)Excludes
securities received or delivered in kind.
(5)June
27, 2023 (fund inception) through August 31, 2023.
(6)Per-share
amount was less than $0.005.
(7)Annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations due to the timing of transactions in shares
of a fund in relation to income earned and/or fluctuations in the fair value of
a fund's investments.
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
a Share Outstanding Throughout the Period Indicated |
Per-Share
Data |
Ratios
and Supplemental Data |
|
|
|
Income
From Investment Operations*: |
|
|
Ratio
to Average Net Assets of: |
|
|
|
Net
Asset Value, Beginning of Period |
Net
Investment
Income
(Loss)(1) |
Net Realized and Unrealized Gain
(Loss) |
Total
From Investment Operations |
Net
Asset Value, End of Period |
Total
Return(2) |
Operating
Expenses(3) |
Operating
Expenses
(before
expense
waiver)(3) |
Net Investment Income (Loss) |
Net Investment Income (Loss) (before expense waiver) |
Portfolio
Turnover
Rate(4) |
Net Assets, End
of Period (in thousands) |
Avantis
Moderate Allocation ETF |
2023(5) |
$50.39 |
0.06 |
0.99 |
1.05 |
$51.44 |
2.09% |
0.03%(6) |
0.05%(6) |
0.69%(6) |
0.67%(6) |
0% |
$2,058 |
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Notes
to Financial Highlights |
(1)Computed
using average shares outstanding throughout the period.
(2)Total
returns are calculated based on the net asset value of the last business day.
Total returns for periods less than one year are not annualized.
(3)Ratio
of operating expenses to average net assets and ratio of operating expenses
before expense waiver to average net assets does not include any fees and
expenses of the underlying funds.
(4)Excludes
securities received or delivered in kind.
(5)June
27, 2023 (fund inception) through August 31, 2023.
(6)Annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations due to the timing of transactions in shares
of a fund in relation to income earned and/or fluctuations in the fair value of
a fund's investments.
See
Notes to Financial Statements.
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Report
of Independent Registered Public Accounting
Firm |
To
the Shareholders and the Board of Trustees of American Century ETF
Trust
Opinion
on the Financial Statements and Financial Highlights
We
have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Avantis®
All Equity Markets ETF, Avantis®
All Equity Markets Value ETF, Avantis®
All International Markets Equity ETF, Avantis®
All International Markets Value ETF, and Avantis®
Moderate
Allocation ETF, (the “Funds”), five of the funds constituting the American
Century ETF Trust, as of August 31, 2023, the related statements of operations,
the statements of changes in net assets, and the financial highlights for the
periods indicated in the table below; and the related notes. In our opinion, the
financial statements and financial highlights present fairly, in all material
respects, the financial position of each of the Funds as of August 31, 2023, and
the results of their operations, the changes in their net assets, and the
financial highlights for the periods listed in the table below, in conformity
with accounting principles generally accepted in the United States of
America.
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Individual
Fund Constituting the American Century ETF Trust |
Statement
of Operations |
Statements
of Changes in Net Assets |
Financial
Highlights |
Avantis®
All Equity Markets ETF |
For
the period from September 27, 2022 (fund inception) through August 31,
2023 |
Avantis®
All Equity Markets Value ETF |
For
the period from June 27, 2023 (fund inception) through August 31,
2023 |
Avantis®
All
International Markets Equity ETF |
Avantis®
All International Markets Value ETF |
Avantis®
Moderate Allocation ETF |
Basis
for Opinion
These
financial statements and financial highlights are the responsibility of the
Funds’ management. Our responsibility is to express an opinion on the Funds’
financial statements and financial highlights based on our audits. We are a
public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (PCAOB) and are required to be independent with respect to
the Funds in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement, whether due to error or fraud. The Funds are not
required to have, nor were we engaged to perform, an audit of their internal
control over financial reporting. As part of our audits, we are required to
obtain an understanding of internal control over financial reporting but not for
the purpose of expressing an opinion on the effectiveness of the Funds’ internal
control over financial reporting. Accordingly, we express no such
opinion.
Our
audits included performing procedures to assess the risks of material
misstatement of the financial statements and financial highlights, whether due
to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements and financial highlights. Our audits
also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of August 31, 2023, by correspondence with
the custodian and brokers; when replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide a
reasonable basis for our opinion.
/s/
Deloitte & Touche LLP
Kansas
City, Missouri
October
17, 2023
We
have served as the auditor of one or more American Century investment companies
since 1997.
The
Board of Trustees
The
individuals listed below serve as trustees of the funds. Each trustee will
continue to serve in this capacity until death, retirement, resignation or
removal from office. The board has adopted a mandatory retirement age for
trustees who are not “interested persons,” as that term is defined in the
Investment Company Act (independent trustees). Trustees who are not also
officers of the trust shall retire on December 31st of the year in which they
reach their 75th birthday.
Jonathan
S. Thomas is an “interested person” because he currently serves as President and
Chief Executive Officer of American Century Companies, Inc. (ACC), the parent
company of American Century Investment Management, Inc. (ACIM or the advisor).
The other trustees are independent. They are not employees, directors or
officers of, and have no financial interest in, ACC or any of its wholly owned,
direct or indirect, subsidiaries, including ACIM and American Century Services,
LLC (ACS), and they do not have any other affiliations, positions or
relationships that would cause them to be considered “interested persons” under
the Investment Company Act. The following trustees also serve in this capacity
for a number of other registered investment companies in the American Century
Investments family of funds: Jonathan S. Thomas, 15; Jeremy I. Bulow, 8; and
Stephen E. Yates, 7.
The
following table presents additional information about the trustees. The mailing
address for each trustee other than Jonathan S. Thomas is 330 Madison Avenue,
New York, New York 10017. The mailing address for Jonathan S. Thomas is 4500
Main Street, Kansas City, Missouri 64111.
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Name (Year
of Birth) |
Position(s)
Held with Funds |
Length
of Time Served |
Principal
Occupation(s) During Past 5 Years |
Number
of American Century Portfolios Overseen by Trustee |
Other
Directorships Held During Past 5 Years |
Independent
Trustees |
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Reginald
M. Browne (1968) |
Trustee
and Board Chair |
Since
2017 (Board Chair since 2019) |
Principal,
GTS Securities (automated capital markets trading firm) (2019 to present);
Senior Managing Director, Co Global Head-ETF Group, Cantor Fitzgerald
(financial services firm) (2013 to 2019) |
50 |
None |
Jeremy
I. Bulow (1954) |
Trustee |
Since
2022 |
Professor
of Economics, Stanford University Graduate School of Business (1979 to
present) |
82 |
None |
Barry
A. Mendelson (1958) |
Trustee |
Since
2017 |
Retired |
50 |
None |
Stephen
E. Yates (1948) |
Trustee |
Since
2017 |
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